Charitable Trusts Flashcards
5 Key things to remember!!
1- must have indefinite beneficiaries and they must be a reasonably large group
2- charitable purpose
3- may be perpetual (not subject to RAP)
4- Cy Pres can be used to change the trust
5- AG has the duty of repping the beneficiaries of charitable trusts in the state (standing + necessary party)
Are these groups okay beneficiaries?
“all my children”
“all descendants of the settlor”
“all orphans in Syracuse”
“all orphans attending Syracuse University”
“For masses for my relatives”
no- small and identifiable
no
yes
unclear b/c the class needs to not be so narrowly defined that just a few people benefit
yes– a trust for masses for relatives is OK
How is cy pres used?
if the stated purpose of the charitable trust can no longer be accomplished, or the designated charity goes out of existence, the court may use this to make the trust as near as possible to what the settlor wanted.
Effect of having Attorney General as rep of beneficiaries
- AG is a NECESSARY PARTY to any suit on construction or enforcement of a charitable trust
- AG and the donor have standing to sue to enforce the trust’s terms
